Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Mar. 08, 2021 | Jun. 26, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | ENGLOBAL CORP | ||
Entity Central Index Key | 0000933738 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 26, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-26 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | NV | ||
Entity File Number | 001-14217 | ||
Entity Public Float | $ 12,341,255 | ||
Entity Common Stock, Shares Outstanding | 27,526,176 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 13,706 | $ 8,307 |
Trade receivables, net of allowances of $386 and $236 | 7,789 | 11,435 |
Prepaid expenses and other current assets | 891 | 889 |
Contract assets | 4,090 | 3,862 |
Total current assets | 26,476 | 24,493 |
Property and equipment, net | 1,263 | 1,033 |
Goodwill | 720 | 720 |
Other Assets | ||
Right of use asset | 1,628 | 2,133 |
Deposits and other assets | 351 | 307 |
Total other assets | 1,979 | 2,440 |
Total assets | 30,438 | 28,686 |
Current Liabilities: | ||
Accounts payable | 2,138 | 3,261 |
Accrued compensation and benefits | 3,048 | 2,783 |
Current portion of leases | 1,541 | 1,041 |
Contract liabilities | 1,258 | 5,438 |
Current portion of note | 3,707 | 0 |
Other current liabilities | 745 | 681 |
Total current liabilities | 12,437 | 13,204 |
Deferred payroll tax | 1,037 | 0 |
Long-term debt | 2,733 | 0 |
Long-term leases | 608 | 1,458 |
Total liabilities | 16,815 | 14,662 |
Commitments and Contingencies (Note 15) | ||
Stockholders' Equity: | ||
Common stock - $0.001 par value; 75,000,000 shares authorized; 27,560,686 and 27,413,626 shares issued and outstanding at December 26, 2020 and December 28, 2019, respectively | 28 | 27 |
Additional paid-in capital | 37,157 | 36,934 |
Accumulated deficit | (23,562) | (22,937) |
Total stockholders' equity | 13,623 | 14,024 |
Total liabilities and stockholders' equity | $ 30,438 | $ 28,686 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 386 | $ 236 |
Common stock, par value | $ .001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 27,560,686 | 27,413,626 |
Common stock, shares outstanding | 27,560,686 | 27,413,626 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Income Statement [Abstract] | ||
Operating revenues | $ 64,449 | $ 56,446 |
Operating costs | 55,998 | 48,530 |
Gross profit | 8,451 | 7,916 |
Selling, general and administrative expenses | 8,834 | 9,317 |
Operating loss | (383) | (1,401) |
Other income (expense): | ||
Interest expense, net | (153) | (31) |
Other income, net | 14 | 49 |
Loss before income taxes | (522) | (1,383) |
Provision for federal and state income taxes | (103) | (83) |
Net loss | $ (625) | $ (1,466) |
Basic and diluted loss per common share | $ (0.02) | $ (0.05) |
Basic and diluted weighted average shares used in computing loss per share (in thousands) | 27,474 | 27,414 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance, beginning at Dec. 29, 2018 | $ 27 | $ 36,934 | $ (21,471) | $ 15,490 |
Share-based compensation - employee | 61 | 61 | ||
Stock retired | (61) | (61) | ||
Net loss | (1,466) | (1,466) | ||
Balance, ending at Dec. 28, 2019 | 27 | 36,934 | (22,937) | 14,024 |
Common stock issued | 1 | 1 | ||
Share-based compensation - employee | 223 | 223 | ||
Net loss | (625) | (625) | ||
Balance, ending at Dec. 26, 2020 | $ 28 | $ 37,157 | $ (23,562) | $ 13,623 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (625) | $ (1,466) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 449 | 389 |
Share-based compensation expense | 223 | 61 |
Changes in current assets and liabilities: | ||
Trade accounts receivable | 3,646 | (1,224) |
Contract assets | (228) | (689) |
Other current assets | (46) | 245 |
Accounts payable | (1,123) | 89 |
Accrued compensation and benefits | 1,301 | 482 |
Contract liabilities | (4,180) | 4,834 |
Income taxes payable | (57) | 84 |
Other current liabilities, net | 121 | (140) |
Net cash provided by (used in) operating activities | (519) | 2,665 |
Cash Flows from Investing Activities: | ||
Proceeds from notes receivable | 0 | 24 |
Property and equipment acquired | (428) | (345) |
Net cash used in investing activities | (428) | (321) |
Cash Flows from Financing Activities: | ||
Purchase of stock | 0 | (61) |
Payments on finance leases | (93) | (36) |
Proceeds from PPP loan | 4,949 | 0 |
Proceeds from revolving credit facility | 1,490 | 0 |
Net cash provided by (used in) financing activities | 6,346 | (97) |
Net change in cash and cash equivalents | 5,399 | 2,247 |
Cash at beginning of year | 8,307 | 6,060 |
Cash at end of year | 13,706 | 8,307 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 153 | 33 |
Right of use assets obtained in exchange for new operating lease liability | 963 | 2,854 |
Leased assets obtained in exchange for new finance lease liabilities | 219 | 351 |
Cash paid during the period for income taxes (net of refunds) | $ 86 | $ 26 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 26, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Operations Basis of Presentation |
Accounting Policies and New Acc
Accounting Policies and New Accounting Pronouncements | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies and New Accounting Pronouncements | Consolidation Policy Fair Value Measurements Cash and cash equivalents Receivables Concentration of Credit Risk Our businesses or product lines are largely dependent on a few relatively large customers. Although we believe we have an extensive customer base, the loss of one of these large customers or if such customers were to incur a prolonged period of decline in business, our financial condition and results of operations could be adversely affected. For the year ended December 26, 2020, four customers provided more than 10% each of our consolidated operating revenues (25.1%, 17.9%, 13.9%, and 13.8%). Two customers provided more than 10% each of our consolidated operating revenues for the year ended December 28, 2019 (23.3% and 18.3%). Amounts included in trade receivables related to these customers totaled $0.0 million, $0.6 million, $0.8 million, and $1.5 million, respectively, at December 26, 2020 and $0.2 million and $0.7 million, respectively, at December 28, 2019. We extend credit to customers in the normal course of business. We have established various procedures to manage our credit exposure, including initial credit approvals, credit limits and terms, letters of credit, and occasionally through rights of offset. We also use prepayments and guarantees to limit credit risk to ensure that our established credit criteria are met. Our most significant exposure to credit risks relates to situations under which we provide services early in the life of a project that is dependent on financing. Risks increase in times of general economic downturns and under conditions that threaten project feasibility. Property and Equipment Asset Group Years Shop equipment 5 – 10 Furniture and fixtures 5 – 7 Computer equipment; Autos and trucks 3 – 5 Software 3 – 5 Leasehold improvements are amortized over the remaining term of the related lease. See Note 4 for details related to property and equipment and related depreciation. Expenditures for maintenance and repairs are expensed as incurred. Upon disposition or retirement of property and equipment, any gain or loss is charged to operations. Goodwill In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The Company compares its fair value of a reporting unit and the carrying value of the reporting unit to measure goodwill impairment loss as required by ASU 2017-04. Fair value was determined by applying a historical earnings multiple times the cash flow of the operating unit after allocation of certain corporate overhead. We performed a qualitative assessment of goodwill for each of the years ended December 26, 2020 and December 28, 2019. This assessment indicated that there was no impairment of goodwill for the years ended December 26, 2020 and December 28, 2019. Impairment of Long-Lived Assets Revenue Recognition A majority of sales of fabrication and assembled systems are under fixed-price contracts. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We generally recognize revenue over time as we perform because of continuous transfer of control to the customer. Our customer typically controls the work in process as evidenced either by contractual termination clauses or by our rights to payment for work performed to date plus a reasonable profit to deliver products or services that do not have an alternative use to the Company. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or service to be provided, which measures the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. We generally use the cost-to-cost method on the labor portion of a project for revenue recognition to measure progress of our contracts because it best depicts the transfer of control to the customer which occurs as we consume the materials on the contracts. Therefore, revenues and estimated profits are recorded proportionally as labor costs are incurred. Under the typical payment terms of our fixed-price contracts, the customer pays us progress payments. These progress payments are based on quantifiable measures of performance or on the achievement of specified events or milestones. The customer may retain a small portion of the contract price until completion of the contract. Revenue recognized in excess of billings is recorded as a contract asset on the balance sheet. Amounts billed and due from our customers are classified as receivables on the balance sheet. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer should we fail to adequately complete some or all of our obligations under the contract. For some contracts we may receive advance payments from the customer. We record a liability for these advance payments in contract liabilities on the balance sheet. The advance payment typically is not considered a significant financing component because it is used to meet working capital demand that can be higher in the early stages of a contract and to protect us from the other party failing to adequately complete some or all of its obligations under the contract. To determine proper revenue recognition for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single performance obligation or whether a single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate a single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. For most of our contracts, we provide a significant service of integrating a complex set of tasks and components into a single project. Hence, the entire contract is accounted for as one performance obligation. Less commonly, we may provide distinct goods or services within a contract in which case we separate the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling price of the promised goods or services underlying each performance obligation and use the expected cost plus margin approach to estimate the standalone selling price of each performance obligation. Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex, subject to variables and requires significant judgment. We estimate variable consideration at the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. Contracts are often modified to account for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of our contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or a reduction of revenue) on a cumulative catch-up basis. We have a standard, monthly process in which management reviews the progress and execution of our performance obligations. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management’s judgment about the ability and cost to achieve the schedule, technical requirements, and other contractual requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation, execution by our subcontractors, the availability and timing of funding from our customer and overhead cost rates, among other variables. Based on this analysis, any adjustments to revenue, operating costs and the related impact to operating income are recognized as necessary in the period they become known. These adjustments may result from positive performance and may result in an increase in operating income during the performance of individual performance obligations if we determine we will be successful in mitigating risks surrounding the technical, schedule and cost aspects of those performance obligations or realizing related opportunities. When estimates of total costs to be incurred exceed total estimates to be earned, a provision for the entire loss on the performance obligation is recognized in the period the loss is estimated. Likewise, these adjustments may result in a decrease in operating income if we determine we will not be successful in mitigating these risks or realizing related opportunities. Changes in estimates of net revenue, operating costs and the related impact to operating income are recognized monthly on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a performance obligation’s percentage of completion. A significant change in one or more of these estimates could affect the profitability of one or more of our performance obligations. Incremental Costs Income Taxes A valuation allowance is recorded to reduce previously recorded tax assets when it becomes more-likely-than-not such asset will not be realized. We evaluate the realizability of deferred tax assets based on all available evidence, both positive and negative, regarding historical operating results, including the estimated timing of future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. We account for uncertain tax positions in accordance with ASC 740. When uncertain tax positions exist, we recognize the tax benefit of the tax positions to the extent that the benefit will more-likely-than-not be realized. The determination as to whether the tax benefit will more-likely-than-not be realized is based upon technical merits of the tax positions as well as consideration of the available facts and circumstances. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. Earnings per Share Treasury Stock Stock–Based Compensation The Company accounts for restricted stock awards granted to consultants using the accounting guidance included in ASC 505-50 “Equity-Based Payments to Non-Employees” (“ASC 505-50”). All transactions in which services are received in exchange for share-based awards are accounted for based on the fair value of the consideration received or the fair value of the awards issued, whichever is more reliably measurable. Share-based compensation is measured at fair value at the earlier of the commitment date or the date the services are completed. |
Detail of Certain Balance Sheet
Detail of Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 26, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Detail of Certain Balance Sheet Accounts | The components of trade receivables, net as of December 26, 2020 and December 28, 2019, are as follows (amounts in thousands): 2020 2019 Amounts billed $ 5,050 $ 5,523 Amounts unbilled 1,455 5,576 Retainage 1,670 572 Less: Allowance for uncollectible accounts (386 ) (236 ) Trade receivables, net $ 7,789 $ 11,435 The components of prepaid expense and other current assets are as follows as of December 26, 2020 and December 28, 2019 (amounts in thousands): 2020 2019 Prepaid expenses $ 843 $ 816 Other receivables - employee 48 54 Note receivable 19 Prepaid expenses and other current assets $ 891 $ 889 The components of other current liabilities are as follows as of December 26, 2020 and December 28, 2019 (amounts in thousands): 2020 2019 Accrual for known contingencies $ 215 $ 145 Customer prepayments 4 1 Gross receipts tax payable 23 96 State income taxes payable 83 67 Insurance payable 420 372 Other current liabilities $ 745 $ 681 Our accrual for known contingencies includes litigation accruals, if any. See “Note 15 – Commitments and Contingencies” for further information. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 26, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following at December 26, 2020 and December 28, 2019 (amounts in thousands): 2020 2019 Computer equipment and software $ 1,170 $ 989 Shop equipment 1,683 1,301 Furniture and fixtures 193 190 Leasehold improvements 845 623 Autos and trucks 87 87 Construction in progress 141 $ 3,978 $ 3,331 Accumulated depreciation and amortization (2,715 ) (2,298 ) Property and equipment, net $ 1,263 $ 1,033 Depreciation expense was $0.4 million and $0.3 million for the years ended December 26, 2020 and December 28, 2019, respectively. During the year ended December 28, 2019, we disposed of $4.9 million of assets in connection with relocating several of our offices and upgrading our IT equipment in several locations. There was no gain or loss associated with these disposals due to the assets being fully depreciated. The $4.9 million total consisted of $1.6 million of leasehold improvements, $0.1 million of furniture and fixtures, $0.2 million of machinery and equipment, and $3.0 million of computer equipment and software. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 26, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Our revenue by contract type was as follows (amounts in thousands): For the Three Months Ended For the Years Ended December 26, 2020 December 28, 2019 December 26, 2020 December 28, 2019 Fixed-price revenue $ 7,037 $ 4,670 $ 35,822 $ 19,088 Time-and-material revenue 4,540 12,018 28,627 37,358 Total Revenue $ 11,577 $ 16,688 $ 64,449 $ 56,446 |
Contracts
Contracts | 12 Months Ended |
Dec. 26, 2020 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Contracts | Costs, estimated earnings, and billings on uncompleted contracts consist of the following at December 26, 2020 and December 28, 2019 (amounts in thousands): 2020 2019 Costs incurred on uncompleted contracts $ 39,154 $ 23,846 Estimated earnings on uncompleted contracts 4,388 5,188 Earned revenues 43,542 29,034 Less: billings to date 40,710 30,610 Net costs in excess of billings on uncompleted contracts $ 2,832 $ (1,576 ) Costs and estimated earnings in excess of billings on uncompleted contracts $ 4,090 $ 3,862 Billings in excess of costs and estimated earnings on uncompleted contracts (1,258 ) (5,438 ) Net costs in excess of billings on uncompleted contracts $ 2,832 $ (1,576 ) Revenue on fixed-price contracts is recorded primarily using the percentage-of-completion (cost-to-cost) method. Revenue and gross margin on fixed-price contracts are subject to revision throughout the lives of the contracts and any required adjustments are made in the period in which the revisions become known. To manage unknown risks, management may use contingency amounts to increase the estimated costs, therefore, lowering the earned revenues until the risks are better identified and quantified or have been mitigated. We had $0.2 million in contingency amounts as of December 26, 2020 and had $0.9 million in contingency amounts as of December 28, 2019. Losses on contracts are recorded in full as they are identified. We recognize service revenue as soon as the services are performed. For clients that we consider higher risk, due to past payment history or history of not providing written work authorizations, we have deferred revenue recognition until we receive either a written authorization or a payment. We had $0.3 million in deferred revenue for the year ended December 26, 2020 and $0.2 million for the year ended December 28, 2019. This deferred revenue represents work on not to exceed contracts that has been performed but has not been billed or been recorded as revenue due to our revenue recognition policies as the work was performed outside the contracted amount without obtaining proper work order changes. It is uncertain as to whether these revenues will eventually be recognized by us or the proceeds collected. The costs associated with these billings have been expensed as incurred. |
Debt
Debt | 12 Months Ended |
Dec. 26, 2020 | |
Debt Disclosure [Abstract] | |
Debt | The components of debt were as follows (amounts in thousands): December 26, 2020 December 28, 2019 PPP Loan (1) $ 4,949 $ Revolving Credit Facility (2) 1,491 Total debt 6,440 Amount due within one year 3,707 Total long-term debt $ 2,733 $ (1) On April 13, 2020, the Company was granted an unsecured loan (the “PPP Loan”) from Origin Bank in the aggregate principal amount of $4,915,800 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The PPP Loan is evidenced by a promissory note, dated as of April 13, 2020 (the “Note”), by the Company in favor of Origin Bank, as lender. Interest Rate: Potential PPP Loan Forgiveness: We have elected to utilize a 24-week covered period as allowed by the Paycheck Protection Program Flexibility Act (“PPPFA”) enacted on June 5, 2020. When applying for PPP Loan forgiveness, we have the option to increase the repayment period for any unforgiven portion of the PPP Loan to five years as permitted under the PPPFA. We have calculated qualified forgivable expenses in excess of our PPP Loan amount. Although we expect the full PPP Loan amount to be forgiven, we cannot guarantee our forgiveness application will be accepted allowing for a fully forgiven loan. (2) On May 21, 2020 (the “Closing Date”), the Company and its wholly owned subsidiaries, ENGlobal U.S., Inc. and ENGlobal Government Services, Inc. (collectively, the “Borrowers”) entered into a Loan and Security Agreement (the “Revolving Credit Facility”) with Pacific Western Bank dba Pacific Western Business Finance, a California state-chartered bank (the “Lender”), pursuant to which the Lender agreed to extend credit to the Borrowers in the form of revolving loans (each a “Loan” and collectively, the “Loans”) in the aggregate amount of up to $6.0 million (the “Maximum Credit Limit”). Set forth below are certain of the material terms of the Revolving Credit Facility: Credit Limit Interest Collateral Maturity: Loan Fee Termination Fee Covenants The future scheduled maturities of our debt are (amounts in thousands): PPP Loan and Revolving Credit Facility (1) Revolving Credit Facility (1) 2021 $ 3,707 $ 2022 1,242 2023 1,491 1,491 2024 Thereafter $ 6,440 $ 1,491 (1) If the PPP Loan is entirely forgiven, only the Revolving Credit Facility would remain as debt. |
Leases
Leases | 12 Months Ended |
Dec. 26, 2020 | |
Leases [Abstract] | |
Leases | The Company leases land, office space and equipment. Arrangements are assessed at inception to determine if a lease exists and, with the adoption of ASC 842, “Leases,” right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of lease payments over the lease term. Because the Company’s leases do not provide an implicit rate of return, the Company uses its incremental borrowing rate at the inception of a lease to calculate the present value of lease payments. The Company has elected to apply the short-term lease exception for all asset classes, excluding lease liabilities from the balance sheet and recognizing the lease payments in the period they are incurred. The components of lease expense were as follows (amounts in thousands): Financial Statement Classification Year ended December 26, 2020 Year ended December 28, 2019 Finance leases: Amortization expense SG&A Expense $ 92 $ 33 Interest expense Interest expense, net 20 7 $ 112 $ 40 Operating leases: Operating costs Operating costs 633 1,214 Selling, general and administrative expenses SG&A Expense 1,830 1,857 $ 2,463 $ 3,071 Total lease expense $ 2,575 $ 3,111 Supplemental balance sheet information related to leases was as follows (amounts in thousands): Financial Statement Classification December 26, 2020 December 28, 2019 ROU Assets: Operating leases Right of Use asset $ 1,628 $ 2,133 Finance leases Property and equipment, net 442 318 Total ROU Assets: $ 2,070 $ 2,451 Lease liabilities: Current liabilities Operating leases Current portion of leases $ 1,421 $ 961 Finance leases Current portion of leases 120 80 Noncurrent Liabilities: Operating leases Long Term Leases 286 1,220 Finance leases Long Term Leases 322 238 Total lease liabilities $ 2,149 $ 2,499 The weighted average remaining lease term and weighted average discount rate were as follows: December 26, 2020 December 28, 2019 Weighted average remaining lease term (years) Operating leases 1.2 2.2 Finance leases 4.2 3.3 Weighted average discount rate Operating leases 1.7 % 3.3 % Finance leases 5.8 % 11.0 % Maturities of operating lease liabilities as of December 26, 2020 are as follows (dollars in thousands): Years ending: Operating leases Finance leases Total 2021 1,448 133 1,581 2022 288 113 401 2023 93 93 2024 73 73 2025 and thereafter 57 57 Total lease payments 1,736 469 2,205 Less: imputed interest (29 ) (27 ) (56 ) Total lease liabilities $ 1,707 $ 442 $ 2,149 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 26, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | ENGlobal sponsors a 401(k) profit sharing plan for its employees. The Company, at the direction of the Board of Directors, may make discretionary contributions. Our employees may elect to make contributions pursuant to a salary reduction agreement upon meeting age and length-of-service requirements. The Company does not currently match employees’ deferrals. The match was suspended beginning December 30, 2018 and no contributions were made during the years ended December 26, 2020 and December 28, 2019. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | The Company’s Amended and Restated 2009 Equity Incentive Plan (the “Equity Plan,” or the “Plan”), currently provides for the aggregate issuance of up to 625,109 shares of common stock. The Equity Plan provides for grants of non-statutory options, incentive stock options, restricted stock awards, performance shares, performance units, restricted stock units and other stock-based awards, in order to enhance the ability of ENGlobal to motivate current employees, to attract employees of outstanding ability and to provide for grants to be made to non-employee directors. At December 26, 2020, 478,049 shares of common stock are available to be issued pursuant to the Equity Plan. We recognized non-cash stock-based compensation expense related to our Equity Plan of $0.2 million for the year ended December 26, 2020 and $0.1 million for the year ended December 28, 2019. Restricted Stock Awards The following is a summary of the status of our restricted stock awards and of changes in restricted stock outstanding for the year ended December 26, 2020: Number of unvested restricted shares Weighted-average grant-date fair value Outstanding at December 28, 2019 191,404 $ 1.12 Granted 147,060 1.02 Vested (193,168 ) 1.10 Forfeited Outstanding at December 26, 2020 145,296 $ 1.05 As of December 26, 2020, there was $0.2 million of total unrecognized compensation cost related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 1 year. During the year ended December 26, 2020, the Company granted the following restricted stock awards. Date Issued Issued to Number of Shares Market Price Fair Value June 11, 2020 Directors (3) 147,060 $ 1.02 $ 150,000 During the year ended December 28, 2019, the Company granted the following restricted stock awards. Date Issued Issued to Number of Shares Market Price Fair Value August 6, 2019 Employees (1) 10,000 $ 1.22 $ 12,200 |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 26, 2020 | |
Equity [Abstract] | |
Treasury Stock | On April 21, 2015, we announced that the Board of Directors had authorized the repurchase of up to $2.0 million of our common stock from time to time through open market or privately negotiated transactions, based on prevailing market conditions. We are not obligated to repurchase any dollar amount or specific number of shares of common stock under the repurchase program, which may be suspended, discontinued or reinstated at any time. As of December 26, 2020, the Company had purchased and retired 1,290,460 shares for $1.6 million under this program. The stock repurchase program was suspended from May 16, 2017 and was reinstated on December 19, 2018. During the year ended December 28, 2019, we purchased and retired 77,687 shares at a cost of $61 thousand. No shares were repurchased during the year ended December 26, 2020. Management does not intend to repurchase any shares in the near future. |
Redeemable Preferred Stock
Redeemable Preferred Stock | 12 Months Ended |
Dec. 26, 2020 | |
Equity [Abstract] | |
Redeemable Preferred Stock | We are authorized to issue 2,000,000 shares of Preferred Stock, par value $0.001 per share (the “Preferred Stock”). The Board of Directors has the authority to approve the issuance of all or any of these shares of the Preferred Stock in one or more series, to determine the number of shares constituting any series and to determine any voting powers, conversion rights, dividend rights and other designations, preferences, limitations, restrictions and rights relating to such shares. While there are no current plans to issue the Preferred Stock, it was authorized in order to provide the Company with flexibility to take advantage of contingencies such as favorable acquisition opportunities. |
Federal and State Income Taxes
Federal and State Income Taxes | 12 Months Ended |
Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Federal and State Income Taxes | The components of our income tax expense for the years ended December 26, 2020 and December 28, 2019 were as follows (amounts in thousands): 2020 2019 Current: State 103 83 Total current 103 83 Deferred: Federal (25 ) (55 ) State 25 55 Total deferred Total income tax expense $ 103 $ 83 The following is a reconciliation of expected income tax benefit to actual income tax expense for the years ended December 26, 2020 and December 28, 2019 (amounts in thousands): 2020 2019 Federal income tax (benefit) at statutory rate of 21% $ (110 ) $ (270 ) State income tax, net of federal income tax effect 64 93 Nondeductible expenses 29 37 Stock Compensation (1 ) Prior year adjustments and true-ups 36 23 Change in valuation allowance 84 201 Total tax expense $ 103 $ 83 The components of the deferred tax asset (liability) consisted of the following at December 26, 2020 and December 28, 2019 (amounts in thousands): 2020 2019 Noncurrent Deferred tax assets Federal and state net operating loss carryforward $ 7,036 $ 7,145 Tax credit carryforwards 1,971 1,971 Allowance for uncollectible accounts 93 53 Accruals not yet deductible for tax purposes 613 352 Goodwill 364 485 Depreciation 3 7 Lease payable 390 488 Total noncurrent deferred tax assets 10,470 10,501 Less: Valuation allowance (10,016 ) (9,912 ) Total noncurrent deferred tax assets, net $ 454 $ 589 Noncurrent deferred tax liabilities: Other (70 ) (107 ) Right to use asset (384 ) (482 ) Total noncurrent deferred tax liabilities (454 ) (589 ) Net deferred tax assets/deferred tax Liabilities $ $ We account for uncertain tax positions in accordance with ASC 740. When uncertain tax positions exist, we recognize the tax benefit of the tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon technical merits of the tax positions as well as consideration of the available facts and circumstances. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of December 26, 2020 and December 28, 2019, we do not have any significant uncertain tax positions. We record a valuation allowance to reduce the carrying value of our deferred tax assets when it is more likely than not that a portion or all of the deferred tax assets will expire before realization of the benefit or future deductibility is not probable. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character and in the related jurisdiction in the future. In evaluating our ability to recover our deferred tax assets, we consider the available positive and negative evidence, including our past operating results, the existence of cumulative losses in the most recent years and our forecast of future taxable income. In estimating future taxable income, we develop assumptions, including the amount of pretax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment. During 2017, after evaluating all available evidence, we recorded a valuation allowance on all net deferred tax assets. For the year ended December 26, 2020, we recognized a total income tax expense of $103 thousand on a pretax book loss of $0.5 million compared to an income tax expense of $83 thousand on a pretax book loss of $1.3 million for the year ended December 28, 2019. As a result of permanent difference add-backs to taxable income related to meals and entertainment, the tax expense increased by $29 thousand which decreased the effective tax rate by 5.5%. An increase of $84 thousand in the valuation allowance decreased the effective tax rate by 16.1%. State income tax (net of Federal) expense in the amount of $83 thousand decreased the effective tax rate by 15.8% mainly due to Texas margins tax. Federal and state tax true-ups increased tax expense in the amount of $36 thousand and decreased the effective tax rate by 6.8%. An effect of rate change due to state tax increased tax expense by $19 thousand and decreased the effective rate by 3.6%. As of December 26, 2020, the Company has a gross federal net operating loss carry-forward of approximately $31.4 million, which will begin to expire in 2032. Under the Tax Cuts and Jobs Act of 2017 ("TCJA"), net operating losses ("NOLs") generated in tax year 2018 and forward have an indefinite carryforward but are limited to 80% of taxable income when utilized. For NOLs incurred in tax year 2017 and prior, the limitation to 80% of taxable income does not apply, but the NOLs are subject to expiration. The provisions were subsequently amended further under the CARES Act on March 27, 2020. The CARES Act amended the net operating loss provisions in the 2017 Tax Cuts and Jobs Act (“TCJA”) and allows for the carryback of NOLs arising in the taxable years ending December 31, 2017 and before January 1, 2021, to each of the five taxable years preceding the taxable year of the loss. Additionally, the 80% limitation related to application of NOLs towards current federal taxable income has been removed for taxable years prior to January 1, 2021; thereby allowing 100% of the NOL to be applied to federal taxable income. As of December 26, 2020, the Company has federal research and development tax credit carryforwards of approximately $1.07 million available to reduce future tax liabilities. The research and development tax credit will begin to expire in 2030. The Company has foreign tax credit carryforwards of approximately $900 thousand which will begin to expire in 2025. Additionally under the TCJA, alternative minimum tax ("AMT") was repealed for corporations and any unutilized AMT credits have become refundable. The Company received the remaining AMT refundable credit in 2020. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 26, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Reporting Segments Our segments are strategic business units that offer different services and products and therefore require different marketing and management strategies. Separate operational leaders are in charge of our engineering offices and our automation offices, including the office that contracts with government agencies. The operating performance of our segments is regularly reviewed with the operational leaders of the two segments, the chief executive officer (“CEO”), the chief financial officer (“CFO”) and others. This group represents the chief operating decision maker (“CODM”) for ENGlobal. Our corporate and other expenses that do not individually meet the criteria for segment reporting are reported separately as Corporate expenses. The Engineering, Procurement and Construction Management (“EPCM”) segment provides services relating to the development, management and execution of projects requiring professional engineering and related project services primarily to the energy industry throughout the United States. The Automation segment provides services related to the design, integration and implementation of advanced automation, information technology, process distributed control systems, analyzer systems, and electrical projects primarily to the upstream and downstream sectors of the energy industry throughout the United States. The Automation segment includes the government services group, which provides engineering, design, installation and operation and maintenance of various government, public sector and international facilities and the fabrication operation. Sales, operating income, identifiable assets, capital expenditures and depreciation for each segment are set forth in the following table. The amount identified as Corporate includes those activities that are not allocated to the operating segments and include costs related to business development, executive functions, finance, accounting, safety, human resources and information technology that are not specifically identifiable with the segments. Segment information for the years ended December 26, 2020 and December 28, 2019 is as follows (amounts in thousands): For the year ended December 26, 2020: EPCM Automation Corporate Consolidated Operating revenues $ 25,929 $ 38,520 $ $ 64,449 Operating income (loss) (69 ) 4,524 (4,838 ) (383 ) Depreciation and amortization 275 57 117 449 Tangible assets 7,389 7,806 14,504 29,699 Goodwill 720 720 Other intangible assets 19 19 Total assets 7,389 8,545 14,504 30,438 Capital expenditures 145 15 268 428 For the year ended December 28, 2019: EPCM Automation Corporate Consolidated Operating revenues $ 19,436 $ 37,010 $ $ 56,446 Operating income (loss) (830 ) 4,595 (5,166 ) (1,401 ) Depreciation and amortization 189 109 91 389 Tangible assets 6,253 12,864 8,830 27,947 Goodwill 720 720 Other intangible assets 19 19 Total assets 6,253 13,603 8,830 28,686 Capital expenditures 202 43 100 345 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 26, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Employment Agreements We have employment agreements with certain of our executive and other officers with severance terms ranging from six to twelve months. Such agreements provide for minimum salary levels. If employment is terminated for any reason other than 1) termination for cause, 2) voluntary resignation or 3) the employee’s death, we are obligated to provide a severance benefit equal to six months of the employee’s salary, and, at our option, an additional six months at 50% of the employee’s salary in exchange for an extension of a non-competition agreement. The terms of these agreements include evergreen provisions allowing for automatic renewal. No liability is recorded for our obligations under employment agreements as the amounts that will ultimately be paid cannot be reasonably estimated. Litigation From time to time, ENGlobal or one or more of its subsidiaries may be involved in various legal proceedings or may be subject to claims that arise in the ordinary course of business alleging, among other things, claims of breach of contract or negligence in connection with the performance or delivery of goods and/or services. The outcome of any such claims or proceedings cannot be predicted with certainty. As of the date of this filing, management is not aware of any such claims against the Company or any subsidiary business entity. Insurance We carry a broad range of insurance coverage, including general and business automobile liability, commercial property, professional errors and omissions, workers’ compensation insurance, directors’ and officers’ liability insurance and a general umbrella policy, all with standard self-insured retentions/deductibles. We also provide health insurance to our employees (including vision and dental), and are partially self-funded for these claims. Provisions for expected future payments are accrued based on our experience, and specific stop loss levels provide protection for the Company. We believe we have adequate reserves for the self-funded portion of our insurance policies. We are not aware of any material litigation or claims that are not covered by these policies or which are likely to materially exceed the Company’s insurance limits. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 26, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | The Company has evaluated subsequent events through the date these financial statements were issued. The Company determined there were no events, other than as described below, that required disclosure or recognition in these financial statements. PPP Forgiveness On November 30, 2020, our lender, Origin Bank, transmitted our PPP Loan forgiveness application to the U.S. Small Business Administration. We have not received a forgiveness decision on our PPP Loan. At The Market Offering On January 29, 2021, the Company filed a shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission (the “SEC”) (the “Registration Statement”), pursuant to which the Company may offer and sell, at its option, securities having an aggregate offering price of up to $100 million. On the same date, the Company entered into an at market issuance sales agreement with B. Riley Securities, Inc. (“B. Riley”), pursuant to which the Company may offer and sell shares of its common stock, par value $0.001 per share, having an aggregate offering price of up to $25 million (the “Placement Shares”), to or through B. Riley, as sales agent (the “Sales Agreement”), from time to time, in an “at the market offering” (as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended) of the Placement Shares (the “ATM Offering”). The Registration Statement includes a base prospectus (the “Base Prospectus”) and a sales agreement prospectus relating to the ATM Offering, specifically relating to the sale of the Placement Shares under the Sales Agreement (the “ATM Prospectus,” and collectively with the Base Prospectus, the “Prospectus”) both of which form part of the Registration Statement. The Company is not obligated to make any sales of Placement Shares under the Sales Agreement and any determination by the Company to do so will be dependent, among other things, on market conditions and the Company’s capital raising needs. The Registration Statement has not yet become effective and these securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective. |
Accounting Policies and New A_2
Accounting Policies and New Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Consolidation Policy | Consolidation Policy |
Fair Value Measurements | Fair Value Measurements |
Cash and Cash Equivalents | Cash and cash equivalents |
Receivables | Receivables |
Concentration of Credit Risk | Concentration of Credit Risk Our businesses or product lines are largely dependent on a few relatively large customers. Although we believe we have an extensive customer base, the loss of one of these large customers or if such customers were to incur a prolonged period of decline in business, our financial condition and results of operations could be adversely affected. For the year ended December 26, 2020, four customers provided more than 10% each of our consolidated operating revenues (25.1%, 17.9%, 13.9%, and 13.8%). Two customers provided more than 10% each of our consolidated operating revenues for the year ended December 28, 2019 (23.3% and 18.3%). Amounts included in trade receivables related to these customers totaled $0.0 million, $0.6 million, $0.8 million, and $1.5 million, respectively, at December 26, 2020 and $0.2 million and $0.7 million, respectively, at December 28, 2019. We extend credit to customers in the normal course of business. We have established various procedures to manage our credit exposure, including initial credit approvals, credit limits and terms, letters of credit, and occasionally through rights of offset. We also use prepayments and guarantees to limit credit risk to ensure that our established credit criteria are met. Our most significant exposure to credit risks relates to situations under which we provide services early in the life of a project that is dependent on financing. Risks increase in times of general economic downturns and under conditions that threaten project feasibility. |
Property and Equipment | Property and Equipment Asset Group Years Shop equipment 5 – 10 Furniture and fixtures 5 – 7 Computer equipment; Autos and trucks 3 – 5 Software 3 – 5 Leasehold improvements are amortized over the remaining term of the related lease. See Note 4 for details related to property and equipment and related depreciation. Expenditures for maintenance and repairs are expensed as incurred. Upon disposition or retirement of property and equipment, any gain or loss is charged to operations. |
Goodwill | Goodwill In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The Company compares its fair value of a reporting unit and the carrying value of the reporting unit to measure goodwill impairment loss as required by ASU 2017-04. Fair value was determined by applying a historical earnings multiple times the cash flow of the operating unit after allocation of certain corporate overhead. We performed a qualitative assessment of goodwill for each of the years ended December 26, 2020 and December 28, 2019. This assessment indicated that there was no impairment of goodwill for the years ended December 26, 2020 and December 28, 2019. |
Impairment of Long-lived Assets | Impairment of Long-Lived Assets |
Revenue Recognition | Revenue Recognition A majority of sales of fabrication and assembled systems are under fixed-price contracts. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We generally recognize revenue over time as we perform because of continuous transfer of control to the customer. Our customer typically controls the work in process as evidenced either by contractual termination clauses or by our rights to payment for work performed to date plus a reasonable profit to deliver products or services that do not have an alternative use to the Company. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or service to be provided, which measures the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. We generally use the cost-to-cost method on the labor portion of a project for revenue recognition to measure progress of our contracts because it best depicts the transfer of control to the customer which occurs as we consume the materials on the contracts. Therefore, revenues and estimated profits are recorded proportionally as labor costs are incurred. Under the typical payment terms of our fixed-price contracts, the customer pays us progress payments. These progress payments are based on quantifiable measures of performance or on the achievement of specified events or milestones. The customer may retain a small portion of the contract price until completion of the contract. Revenue recognized in excess of billings is recorded as a contract asset on the balance sheet. Amounts billed and due from our customers are classified as receivables on the balance sheet. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer should we fail to adequately complete some or all of our obligations under the contract. For some contracts we may receive advance payments from the customer. We record a liability for these advance payments in contract liabilities on the balance sheet. The advance payment typically is not considered a significant financing component because it is used to meet working capital demand that can be higher in the early stages of a contract and to protect us from the other party failing to adequately complete some or all of its obligations under the contract. To determine proper revenue recognition for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single performance obligation or whether a single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate a single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. For most of our contracts, we provide a significant service of integrating a complex set of tasks and components into a single project. Hence, the entire contract is accounted for as one performance obligation. Less commonly, we may provide distinct goods or services within a contract in which case we separate the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling price of the promised goods or services underlying each performance obligation and use the expected cost plus margin approach to estimate the standalone selling price of each performance obligation. Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex, subject to variables and requires significant judgment. We estimate variable consideration at the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. Contracts are often modified to account for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of our contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or a reduction of revenue) on a cumulative catch-up basis. We have a standard, monthly process in which management reviews the progress and execution of our performance obligations. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management’s judgment about the ability and cost to achieve the schedule, technical requirements, and other contractual requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation, execution by our subcontractors, the availability and timing of funding from our customer and overhead cost rates, among other variables. Based on this analysis, any adjustments to revenue, operating costs and the related impact to operating income are recognized as necessary in the period they become known. These adjustments may result from positive performance and may result in an increase in operating income during the performance of individual performance obligations if we determine we will be successful in mitigating risks surrounding the technical, schedule and cost aspects of those performance obligations or realizing related opportunities. When estimates of total costs to be incurred exceed total estimates to be earned, a provision for the entire loss on the performance obligation is recognized in the period the loss is estimated. Likewise, these adjustments may result in a decrease in operating income if we determine we will not be successful in mitigating these risks or realizing related opportunities. Changes in estimates of net revenue, operating costs and the related impact to operating income are recognized monthly on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a performance obligation’s percentage of completion. A significant change in one or more of these estimates could affect the profitability of one or more of our performance obligations. |
Incremental Costs | Incremental Costs |
Income Taxes | Income Taxes A valuation allowance is recorded to reduce previously recorded tax assets when it becomes more-likely-than-not such asset will not be realized. We evaluate the realizability of deferred tax assets based on all available evidence, both positive and negative, regarding historical operating results, including the estimated timing of future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. We account for uncertain tax positions in accordance with ASC 740. When uncertain tax positions exist, we recognize the tax benefit of the tax positions to the extent that the benefit will more-likely-than-not be realized. The determination as to whether the tax benefit will more-likely-than-not be realized is based upon technical merits of the tax positions as well as consideration of the available facts and circumstances. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. |
Earnings Per Share | Earnings per Share |
Treasury Stock | Treasury Stock |
Stock-Based Compensation | Stock–Based Compensation The Company accounts for restricted stock awards granted to consultants using the accounting guidance included in ASC 505-50 “Equity-Based Payments to Non-Employees” (“ASC 505-50”). All transactions in which services are received in exchange for share-based awards are accounted for based on the fair value of the consideration received or the fair value of the awards issued, whichever is more reliably measurable. Share-based compensation is measured at fair value at the earlier of the commitment date or the date the services are completed. |
Accounting Policies and New A_3
Accounting Policies and New Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Estimated useful lives of assets | Asset Group Years Shop equipment 5 – 10 Furniture and fixtures 5 – 7 Computer equipment; Autos and trucks 3 – 5 Software 3 – 5 |
Detail of Certain Balance She_2
Detail of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Trade receivables | 2020 2019 Amounts billed $ 5,050 $ 5,523 Amounts unbilled 1,455 5,576 Retainage 1,670 572 Less: Allowance for uncollectible accounts (386 ) (236 ) Trade receivables, net $ 7,789 $ 11,435 |
Prepaid expenses and other current assets | 2020 2019 Prepaid expenses $ 843 $ 816 Other receivables - employee 48 54 Note receivable 19 Prepaid expenses and other current assets $ 891 $ 889 |
Other current liabilities | 2020 2019 Accrual for known contingencies $ 215 $ 145 Customer prepayments 4 1 Gross receipts tax payable 23 96 State income taxes payable 83 67 Insurance payable 420 372 Other current liabilities $ 745 $ 681 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | 2020 2019 Computer equipment and software $ 1,170 $ 989 Shop equipment 1,683 1,301 Furniture and fixtures 193 190 Leasehold improvements 845 623 Autos and trucks 87 87 Construction in progress 141 $ 3,978 $ 3,331 Accumulated depreciation and amortization (2,715 ) (2,298 ) Property and equipment, net $ 1,263 $ 1,033 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by contract type | For the Three Months Ended For the Years Ended December 26, 2020 December 28, 2019 December 26, 2020 December 28, 2019 Fixed-price revenue $ 7,037 $ 4,670 $ 35,822 $ 19,088 Time-and-material revenue 4,540 12,018 28,627 37,358 Total Revenue $ 11,577 $ 16,688 $ 64,449 $ 56,446 |
Contracts (Tables)
Contracts (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Costs, estimated earnings and billings on uncompleted contracts | 2020 2019 Costs incurred on uncompleted contracts $ 39,154 $ 23,846 Estimated earnings on uncompleted contracts 4,388 5,188 Earned revenues 43,542 29,034 Less: billings to date 40,710 30,610 Net costs in excess of billings on uncompleted contracts $ 2,832 $ (1,576 ) Costs and estimated earnings in excess of billings on uncompleted contracts $ 4,090 $ 3,862 Billings in excess of costs and estimated earnings on uncompleted contracts (1,258 ) (5,438 ) Net costs in excess of billings on uncompleted contracts $ 2,832 $ (1,576 ) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Debt Disclosure [Abstract] | |
Debt | December 26, 2020 December 28, 2019 PPP Loan (1) $ 4,949 $ — Revolving Credit Facility (2) 1,491 — Total debt 6,440 — Amount due within one year 3,707 — Total long-term debt $ 2,733 $ — (1) On April 13, 2020, the Company was granted an unsecured loan (the “PPP Loan”) from Origin Bank in the aggregate principal amount of $4,915,800 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The PPP Loan is evidenced by a promissory note, dated as of April 13, 2020 (the “Note”), by the Company in favor of Origin Bank, as lender. Interest Rate: Potential PPP Loan Forgiveness: We have elected to utilize a 24-week covered period as allowed by the Paycheck Protection Program Flexibility Act (“PPPFA”) enacted on June 5, 2020. When applying for PPP Loan forgiveness, we have the option to increase the repayment period for any unforgiven portion of the PPP Loan to five years as permitted under the PPPFA. We have calculated qualified forgivable expenses in excess of our PPP Loan amount. Although we expect the full PPP Loan amount to be forgiven, we cannot guarantee our forgiveness application will be accepted allowing for a fully forgiven loan. (2) On May 21, 2020 (the “Closing Date”), the Company and its wholly owned subsidiaries, ENGlobal U.S., Inc. and ENGlobal Government Services, Inc. (collectively, the “Borrowers”) entered into a Loan and Security Agreement (the “Revolving Credit Facility”) with Pacific Western Bank dba Pacific Western Business Finance, a California state-chartered bank (the “Lender”), pursuant to which the Lender agreed to extend credit to the Borrowers in the form of revolving loans (each a “Loan” and collectively, the “Loans”) in the aggregate amount of up to $6.0 million (the “Maximum Credit Limit”). Set forth below are certain of the material terms of the Revolving Credit Facility: Credit Limit Interest Collateral Maturity: Loan Fee Termination Fee Covenants |
Maturities of debt | PPP Loan and Revolving Credit Facility (1) Revolving Credit Facility (1) 2021 $ 3,707 $ — 2022 1,242 — 2023 1,491 1,491 2024 — — Thereafter — — $ 6,440 $ 1,491 (1) If the PPP Loan is entirely forgiven, only the Revolving Credit Facility would remain as debt. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Leases [Abstract] | |
Lease expense | Financial Statement Classification Year ended December 26, 2020 Year ended December 28, 2019 Finance leases: Amortization expense SG&A Expense $ 92 $ 33 Interest expense Interest expense, net 20 7 $ 112 $ 40 Operating leases: Operating costs Operating costs 633 1,214 Selling, general and administrative expenses SG&A Expense 1,830 1,857 $ 2,463 $ 3,071 Total lease expense $ 2,575 $ 3,111 |
Supplemental balance sheet information related to leases | Financial Statement Classification December 26, 2020 December 28, 2019 ROU Assets: Operating leases Right of Use asset $ 1,628 $ 2,133 Finance leases Property and equipment, net 442 318 Total ROU Assets: $ 2,070 $ 2,451 Lease liabilities: Current liabilities Operating leases Current portion of leases $ 1,421 $ 961 Finance leases Current portion of leases 120 80 Noncurrent Liabilities: Operating leases Long Term Leases 286 1,220 Finance leases Long Term Leases 322 238 Total lease liabilities $ 2,149 $ 2,499 |
Weighted average remaining lease term and weighted average discount rate | December 26, 2020 December 28, 2019 Weighted average remaining lease term (years) Operating leases 1.2 2.2 Finance leases 4.2 3.3 Weighted average discount rate Operating leases 1.7 % 3.3 % Finance leases 5.8 % 11.0 % |
Maturities of operating lease liabilities | Years ending: Operating leases Finance leases Total 2021 1,448 133 1,581 2022 288 113 401 2023 93 93 2024 73 73 2025 and thereafter 57 57 Total lease payments 1,736 469 2,205 Less: imputed interest (29 ) (27 ) (56 ) Total lease liabilities $ 1,707 $ 442 $ 2,149 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Nonvested restricted stock activity | Number of unvested restricted shares Weighted-average grant-date fair value Outstanding at December 28, 2019 191,404 $ 1.12 Granted 147,060 1.02 Vested (193,168 ) 1.10 Forfeited Outstanding at December 26, 2020 145,296 $ 1.05 |
Restricted stock and restricted stock units activity | During the year ended December 26, 2020, the Company granted the following restricted stock awards. Date Issued Issued to Number of Shares Market Price Fair Value June 11, 2020 Directors (3) 147,060 $ 1.02 $ 150,000 During the year ended December 28, 2019, the Company granted the following restricted stock awards. Date Issued Issued to Number of Shares Market Price Fair Value August 6, 2019 Employees (1) 10,000 $ 1.22 $ 12,200 |
Federal and State Income Taxes
Federal and State Income Taxes (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of our income tax expense | 2020 2019 Current: State 103 83 Total current 103 83 Deferred: Federal (25 ) (55 ) State 25 55 Total deferred Total income tax expense $ 103 $ 83 |
Effective income tax rate reconciliation | 2020 2019 Federal income tax (benefit) at statutory rate of 21% $ (110 ) $ (270 ) State income tax, net of federal income tax effect 64 93 Nondeductible expenses 29 37 Stock Compensation (1 ) Prior year adjustments and true-ups 36 23 Change in valuation allowance 84 201 Total tax expense $ 103 $ 83 |
Deferred tax assets and (liabilities) | 2020 2019 Noncurrent Deferred tax assets Federal and state net operating loss carryforward $ 7,036 $ 7,145 Tax credit carryforwards 1,971 1,971 Allowance for uncollectible accounts 93 53 Accruals not yet deductible for tax purposes 613 352 Goodwill 364 485 Depreciation 3 7 Lease payable 390 488 Total noncurrent deferred tax assets 10,470 10,501 Less: Valuation allowance (10,016 ) (9,912 ) Total noncurrent deferred tax assets, net $ 454 $ 589 Noncurrent deferred tax liabilities: Other (70 ) (107 ) Right to use asset (384 ) (482 ) Total noncurrent deferred tax liabilities (454 ) (589 ) Net deferred tax assets/deferred tax Liabilities $ $ |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Segment Reporting [Abstract] | |
Segment information | For the year ended December 26, 2020: EPCM Automation Corporate Consolidated Operating revenues $ 25,929 $ 38,520 $ — $ 64,449 Operating income (loss) (69 ) 4,524 (4,838 ) (383 ) Depreciation and amortization 275 57 117 449 Tangible assets 7,389 7,806 14,504 29,699 Goodwill — 720 — 720 Other intangible assets — 19 — 19 Total assets 7,389 8,545 14,504 30,438 Capital expenditures 145 15 268 428 For the year ended December 28, 2019: EPCM Automation Corporate Consolidated Operating revenues $ 19,436 $ 37,010 $ — $ 56,446 Operating income (loss) (830 ) 4,595 (5,166 ) (1,401 ) Depreciation and amortization 189 109 91 389 Tangible assets 6,253 12,864 8,830 27,947 Goodwill — 720 — 720 Other intangible assets — 19 — 19 Total assets 6,253 13,603 8,830 28,686 Capital expenditures 202 43 100 345 |
Accounting Policies and New A_4
Accounting Policies and New Accounting Pronouncements (Details) | 12 Months Ended |
Dec. 26, 2020 | |
Shop Equipment | |
Estimated useful lives | 5 - 10 Years |
Furniture and Fixtures | |
Estimated useful lives | 5 - 7 Years |
Computer Equipment | |
Estimated useful lives | 3 - 5 Years |
Autos and Trucks | |
Estimated useful lives | 3 - 5 Years |
Software | |
Estimated useful lives | 3 - 5 Years |
Accounting Policies and New A_5
Accounting Policies and New Accounting Pronouncements (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Trade receivables | $ 7,789 | $ 11,435 |
Revenue | Customer 1 | ||
Concentration risk | 25.10% | 23.30% |
Revenue | Customer 2 | ||
Concentration risk | 17.90% | 18.30% |
Revenue | Customer 3 | ||
Concentration risk | 13.90% | |
Revenue | Customer 4 | ||
Concentration risk | 13.38% | |
Trade Receivables | Customer 1 | ||
Trade receivables | $ 0 | $ 200 |
Trade Receivables | Customer 2 | ||
Trade receivables | 600 | $ 700 |
Trade Receivables | Customer 3 | ||
Trade receivables | 800 | |
Trade Receivables | Customer 4 | ||
Trade receivables | $ 1,500 |
Detail of Certain Balance She_3
Detail of Certain Balance Sheet Accounts (Details) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Amounts billed | $ 5,050 | $ 5,523 |
Amounts unbilled | 1,455 | 5,576 |
Retainage | 1,670 | 572 |
Less: allowance for uncollectible accounts | (386) | (236) |
Trade receivables, net | $ 7,789 | $ 11,435 |
Detail of Certain Balance She_4
Detail of Certain Balance Sheet Accounts (Details 1) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 843 | $ 816 |
Other receivables - employee | 48 | 54 |
Note receivable | 0 | 19 |
Prepaid expenses and other current assets | $ 891 | $ 889 |
Detail of Certain Balance She_5
Detail of Certain Balance Sheet Accounts (Details 2) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrual for known contingencies | $ 215 | $ 145 |
Customer prepayments | 4 | 1 |
Gross receipts tax payable | 23 | 96 |
State income taxes payable | 83 | 67 |
Insurance payable | 420 | 372 |
Other current liabilities | $ 745 | $ 681 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Property and equipment, gross | $ 3,978 | $ 3,331 |
Accumulated depreciation and amortization | (2,715) | (2,298) |
Property and equipment, net | 1,263 | 1,033 |
Computer Equipment and Software | ||
Property and equipment, gross | 1,170 | 989 |
Shop Equipment | ||
Property and equipment, gross | 1,683 | 1,301 |
Furniture and Fixtures | ||
Property and equipment, gross | 193 | 190 |
Leasehold Improvements | ||
Property and equipment, gross | 845 | 623 |
Autos and Trucks | ||
Property and equipment, gross | 87 | 87 |
Construction in Progress | ||
Property and equipment, gross | $ 0 | $ 141 |
Property and Equipment (Detai_2
Property and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 400 | $ 300 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | |
Total revenue | $ 11,577 | $ 16,688 | $ 64,449 | $ 56,446 |
Fixed-Price Revenue | ||||
Total revenue | 7,037 | 4,670 | 35,822 | 19,088 |
Time-and-Material Revenue | ||||
Total revenue | $ 4,540 | $ 12,018 | $ 28,627 | $ 37,358 |
Contracts (Details)
Contracts (Details) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Costs incurred on uncompleted contracts | $ 39,154 | $ 23,846 |
Estimated earnings on uncompleted contracts | 4,388 | 5,188 |
Earned revenues | 43,542 | 29,034 |
Less: billings to date | 40,710 | 30,610 |
Net costs and estimated earnings in excess of billings | 2,832 | (1,576) |
Costs and estimated earnings in excess of billings on uncompleted contracts | 4,090 | 3,862 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (1,258) | (5,438) |
Net costs in excess of billings on uncompleted contracts | $ 2,832 | $ (1,576) |
Contracts (Details Narrative)
Contracts (Details Narrative) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Deferred revenue | $ 300 | $ 200 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Debt Disclosure [Abstract] | ||
PPP loan | $ 4,949 | $ 0 |
Revolving credit facility | 1,491 | 0 |
Total debt | 6,440 | 0 |
Amount due within one year | 3,707 | 0 |
Total long-term debt | $ 2,733 | $ 0 |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 | |
Long-term debt | $ 6,440 | $ 0 | |
PPP Loan and Revolving Credit Facility | |||
2021 | [1] | 3,707 | |
2022 | [1] | 1,242 | |
2023 | [1] | 1,491 | |
2024 | [1] | 0 | |
Thereafter | [1] | 0 | |
Long-term debt | [1] | 6,440 | |
Revolving Credit Facility | |||
2021 | [1] | 0 | |
2022 | [1] | 0 | |
2023 | [1] | 1,491 | |
2024 | [1] | 0 | |
Thereafter | [1] | 0 | |
Long-term debt | [1] | $ 1,491 | |
[1] | If the PPP Loan is entirely forgiven, only the Revolving Credit Facility would remain as debt. |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Total finance lease expense | $ 112 | $ 40 |
Total operating lease expense | 2,463 | 3,071 |
Total lease expense | 2,575 | 3,111 |
Operating Costs | ||
Total operating lease expense | 633 | 1,214 |
SG&A Expense | ||
Total finance lease expense | 92 | 33 |
Total operating lease expense | 1,830 | 1,857 |
Interest Expense, Net | ||
Total finance lease expense | $ 20 | $ 7 |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
ROU assets - operating leases | $ 1,628 | $ 2,133 |
ROU assets - finance leases | 442 | 318 |
ROU assets | 2,070 | 2,451 |
Current lease liabilities - operating leases | 1,421 | 961 |
Current lease liabilities - finance leases | 120 | 80 |
Noncurrent lease liabilities - operating leases | 286 | 1,220 |
Noncurrent lease liabilities - finance leases | 322 | 238 |
Total lease liabilities | 2,149 | 2,499 |
Right of Use Asset | ||
ROU assets - operating leases | 1,628 | 2,133 |
Property and Equipment, Net | ||
ROU assets - finance leases | $ 442 | $ 318 |
Leases (Details 2)
Leases (Details 2) | Dec. 26, 2020 | Dec. 28, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term (years) - operating leases | 1 year 2 months 12 days | 2 years 2 months 12 days |
Weighted average remaining lease term (years) - finance leases | 4 years 2 months 12 days | 3 years 3 months 18 days |
Weighted average discount rate - operating leases | 1.70% | 3.30% |
Weighted average discount rate - finance leases | 5.80% | 11.00% |
Leases (Details 3)
Leases (Details 3) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Operating Leases | ||
2021 | $ 1,448 | |
2022 | 288 | |
2023 | 0 | |
2024 | 0 | |
2025 and thereafter | 0 | |
Total lease payments | 1,736 | |
Less: imputed interest | (29) | |
Total lease liabilities | 1,707 | |
Finance Leases | ||
2021 | 133 | |
2022 | 113 | |
2023 | 93 | |
2024 | 73 | |
2025 and thereafter | 57 | |
Total lease payments | 469 | |
Less: imputed interest | (27) | |
Total lease liabilities | 442 | |
Total | ||
2021 | 1,581 | |
2022 | 401 | |
2023 | 93 | |
2024 | 73 | |
2025 and thereafter | 57 | |
Total lease payments | 2,205 | |
Less: imputed interest | (56) | |
Total lease liabilities | $ 2,149 | $ 2,499 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Retirement Benefits [Abstract] | ||
Contributions by employer | $ 0 | $ 0 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) | 12 Months Ended |
Dec. 26, 2020$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Number of unvested restricted shares, beginning | shares | 191,404 |
Number of unvested restricted shares, granted | shares | 147,060 |
Number of unvested restricted shares, vested | shares | (193,168) |
Number of unvested restricted shares, forfeited | shares | 0 |
Number of unvested restricted shares, ending | shares | 145,296 |
Weighted-average grant-date fair value, beginning | $ / shares | $ 1.12 |
Weighted-average grant-date fair value, granted | $ / shares | 1.02 |
Weighted-average grant-date fair value, vested | $ / shares | 1.10 |
Weighted-average grant-date fair value, forfeited | $ / shares | .00 |
Weighted-average grant-date fair value, ending | $ / shares | $ 1.05 |
Stock Compensation Plans (Det_2
Stock Compensation Plans (Details 1) - Restricted Stock - USD ($) | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
June 11, 2020 | ||
Shares issued to | Directors | |
Number of shares | 147,060 | |
Market price | $ 1.02 | |
Fair value | $ 150,000 | |
August 6, 2019 | ||
Shares issued to | Employees | |
Number of shares | 10,000 | |
Market price | $ 1.22 | |
Fair value | $ 12,200 |
Stock Compensation Plans (Det_3
Stock Compensation Plans (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Number of shares available to be issued pursuant to the Equity Plan | 478,049 | |
Non-cash stock-based compensation expense | $ 200 | $ 100 |
Unrecognized compensation cost related to unvested restricted stock awards | $ 200 | |
Unrecognized compensation cost related to unvested restricted stock awards, period of recognition | 1 year |
Treasury Stock (Details Narrati
Treasury Stock (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Equity [Abstract] | |
Stock retired | $ (61) |
Redeemable Preferred Stock (Det
Redeemable Preferred Stock (Details Narrative) - $ / shares | Dec. 26, 2020 | Dec. 28, 2019 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, par value | $ .001 | $ 0.001 |
Federal and State Income Taxe_2
Federal and State Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Current: | ||
State | $ 103 | $ 83 |
Total current | 103 | 83 |
Deferred: | ||
Federal | (25) | (55) |
State | 25 | 55 |
Total deferred | 0 | 0 |
Total income tax benefit | $ 103 | $ 83 |
Federal and State Income Taxe_3
Federal and State Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax (benefit) at statutory rate of 21% | $ (110) | $ (270) |
State income tax, net of federal income tax effect | 64 | 93 |
Nondeductible expenses | 29 | 37 |
Stock compensation | 0 | (1) |
Prior year adjustments and true-ups | 36 | 23 |
Change in valuation allowance | 84 | 201 |
Total tax expense | $ 103 | $ 83 |
Federal and State Income Taxe_4
Federal and State Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Income Tax Disclosure [Abstract] | ||
Federal and state net operating loss carryforward | $ 7,036 | $ 7,145 |
Tax credit carryforwards | 1,971 | 1,971 |
Allowance for uncollectible accounts | 93 | 53 |
Accruals not yet deductible for tax purposes | 613 | 352 |
Goodwill | 364 | 485 |
Depreciation | 3 | 7 |
Lease payable | 390 | 488 |
Total noncurrent deferred tax assets | 10,470 | 10,501 |
Less: valuation allowance | (10,016) | (9,912) |
Total noncurrent deferred tax assets, net | 454 | 589 |
Other | (70) | (107) |
Right to use asset | (384) | (482) |
Total noncurrent deferred tax liabilities | (454) | (589) |
Net deferred tax assets/deferred tax liabilities | $ 0 | $ 0 |
Federal and State Income Taxe_5
Federal and State Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 103 | $ 83 |
Loss before income taxes | (522) | $ (1,383) |
Federal net operating loss carry-forward | 31,400 | |
Federal research and development tax credit carryforwards | $ 1,070 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | |
Operating revenues | $ 11,577 | $ 16,688 | $ 64,449 | $ 56,446 |
Operating income (loss) | (383) | (1,401) | ||
Depreciation and amortization | 449 | 389 | ||
Tangible assets | 29,699 | 27,947 | 29,699 | 27,947 |
Goodwill | 720 | 720 | 720 | 720 |
Other intangible assets | 19 | 19 | 19 | 19 |
Total assets | 30,438 | 28,686 | 30,438 | 28,686 |
Capital expenditures | 428 | 345 | ||
EPCM | ||||
Operating revenues | 25,929 | 19,436 | ||
Operating income (loss) | (69) | (830) | ||
Depreciation and amortization | 275 | 189 | ||
Tangible assets | 7,389 | 6,253 | 7,389 | 6,253 |
Goodwill | 0 | 0 | 0 | 0 |
Other intangible assets | 0 | 0 | 0 | 0 |
Total assets | 7,389 | 6,253 | 7,389 | 6,253 |
Capital expenditures | 145 | 202 | ||
Automation | ||||
Operating revenues | 38,520 | 37,010 | ||
Operating income (loss) | 4,524 | 4,595 | ||
Depreciation and amortization | 57 | 109 | ||
Tangible assets | 7,806 | 12,864 | 7,806 | 12,864 |
Goodwill | 720 | 720 | 720 | 720 |
Other intangible assets | 19 | 19 | 19 | 19 |
Total assets | 8,545 | 13,603 | 8,545 | 13,603 |
Capital expenditures | 15 | 43 | ||
Corporate | ||||
Operating revenues | 0 | 0 | ||
Operating income (loss) | (4,838) | (5,166) | ||
Depreciation and amortization | 117 | 91 | ||
Tangible assets | 14,504 | 8,830 | 14,504 | 8,830 |
Goodwill | 0 | 0 | 0 | 0 |
Other intangible assets | 0 | 0 | 0 | 0 |
Total assets | $ 14,504 | $ 8,830 | 14,504 | 8,830 |
Capital expenditures | $ 268 | $ 100 |
Segment Information (Details Na
Segment Information (Details Narrative) | 12 Months Ended |
Dec. 26, 2020Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |